Indian bond yields hit 6.9480% after Kevin Warsh remarks
Indian government bonds took a dip on Monday, August 31, 2026, with the 10-year yield rising to 6.9480%, after US Federal Reserve Chair Kevin Warsh suggested a possible interest rate hike if US inflation gets close to 2%, which has everyone a bit nervous about tighter money policies in America, and that's shaking up markets, including India.
Dollar strengthens as oil hits $90
Warsh's comments have made a September US rate hike much more likely (jumping from 35% to 60%), pushing up US bond yields and strengthening the dollar.
On top of that, oil prices just shot up to $90 per barrel after tensions near the Strait of Hormuz, adding extra inflation worries for India.
The Reserve Bank of India is also signaling it might consider its own rate hikes if prices keep climbing, so expect some market turbulence ahead.